Venezuela, sanctioned and unable to legally use U.S. dollars from oil sales, has turned to stablecoins, primarily Tether’s USDT. Economist Asdrúbal Oliveros estimates 80% of Venezuela’s oil sales are conducted using USDT. Initially banned, the government now allows banks to sell USDT earned from oil to local businesses for domestic and international payments. Grocery stores are working to accept USDT payments. Some Venezuelans call USDT “Binance dollars” and use it for everyday transactions. However, the U.S. indictment of Nicolás Maduro didn’t mention crypto, citing traditional money laundering methods. Experts suggest crypto isn’t yet capable of moving large sums needed for illicit activities, due to compliance controls. DEA seizures of virtual currency are up, while cash seizures are down. Mexican cartels are using stablecoins to launder money and purchase chemicals from China.
Venezuela’s sanctions are stablecoins’ proof of concept
